When you start a dropshipping business and open a store on Shopify,Woocmmerce, or other ecommerce platforms, you need to choose your store’s payment gateways to make transactions. With payment gateway integrated into your store, customers can securely transfer money from their account to yours. Otherwise, customers won’t be able to pay for the services or products they are buying online. Though there are many different payment gateways, you should choose the right one to make it easy for customers to pay for your products.
How To Choose The Right Payment Gateway
You should consider the following to choose the right payment gateway:
1. Supported by your e-commerce platform
Different ecommerce platforms support different payment gateways. If you use Shopify, then you’ll need a gateway that integrates with that specific platform.
You can check which payment gateways your e-commerce platform works with. Just enter to the platform’s official extension catalog or documentation and look into the “payments” section.
There are the lists of payment gateways available on some top ecommerce platforms:
2. Check security
The security of the network can keep your customers from worrying that their financial information and ensure your customers that financial information remains secure when purchasing from your store. To make sure that your payment gateway is secure, always check that they are PCI compliant. It is critical when accepting credit cards online.
There is the short list of payment gateway security layers:
①Every payment gateway has high-level encryption (SSL encryption 128 Bit encrypted) to avoid all types of breaches.
②The second layer of security is the digital signature. Even if a hacker got your ID, your account is still safe with digital signatures.
③After digital signature comes the Dynamic IPs, if your account is used from another IP address then it will be denied.
3. Attention to the fees
Make sure to carefully check the fee structure with your gateway before you commit to it long term.
Most commonly, there are three components of the final price tag:
Set-up cost: varies from $0 – $250.
Monthly cost: $10 – $50.
Transaction fees: Usually, it’s $0.00 – $0.25 + 1% – 5% per each transaction. You have to pay both the fixed fee and the percentage of the transaction.
In addition, there may be other fees, such as chargeback fees, payment processing fees, termination fees, etc.
The following are the fees that you can make yourself aware of:
- Start-up/annual fee
- Monthly statement fee
- Refund fee
- Transaction fee
- Minimum monthly fee
- Settlement fee
How much you pay to transfer the money from the merchant account to your regular bank account.
- Anticipation fee
If you want to receive the money before the standard credit card deadline.
- Rolling reserve
If you have a high-risk business, processors may ask for an initial warranty.
- Termination fees
- Chargeback fee
4. Good customer experience
It is necessary to provide a good and convenient shopping experience for customers. Avoid too many steps, too much time, or too much personal information in case your customer abandon the purchase. Try to look for a payment gateway that allows you to accept all major credit and debit cards, as well as being integrated with all major shopping carts. What’s more, the payment gateway should be optimized for mobile users as well.
5. Use more than one payment gateway
You should use more than one payment gateway to make it easier for customers and give everyone other options. More options will translate to more convenience for the customer and less friction at checkout. Paypal is a necessary payment gateway for it is available in most countries around the world which allows you to sell internationally. And you should know your target audiences’ preference about the payment methods and see if the payment gateway support them. Each payment gateway supports a different set of payment methods.